The Italian confectionery giant Ferrero has closed the purchase of Belgian biscuit company Delacre by mid December, as planned. It was United Biscuit to sell Delacre to Ferrero. United Biscuit is a British subsidiary of Pladis, which is part of Turkish group Yildiz Holding. Pladis was created to bring together a series of bakery and confectionery activities of the Turkish group, including the famous Belgian chocolate brand Godiva and Mc Vitie’s biscuits.
THE RELATIONSHIP WITH YILDIZ – Delacre’s acquisition seems to strengthen the link between Ferrero and Turkish Yildiz Holding. Ferrero, in fact, is the Mc Vitie’s biscuits’ (the most important Pladis’ brand) distributor in Italy. In Ferrero’s latest balance sheet, Mc Vitie’s performance in Italy was defined “positive” by the Italian company managers.
A €130 MILLION TURNOVER – Delacre’s latest turnover is about €130 million, and the company has two plants (that will take Ferrero’s plants number up to 24) in Lambermont (Belgium) and in Nieppe (France), employing more than 600 workers. Delacre’s sales are focused not only in Europe but also in the large USA marketplace which is considered Ferrero’s number one priority. Delacre has ensured in a statement that “all production units and employees – both management and workers – will be kept”.
EYES ON LINDT – In 2015, an Euromonitor International simulation showed what will happen should Ferrero acquire Swiss confectionery group Lindt – whose revenue amount to around €3,7 billion. This hypothetical union could achieve raw material cost savings (chocolate and hazelnuts, at all-time high these days). Moreover, Ferrero would become the third position player in the USA confectionery market. In Western Europe, Ferrero and Lindt could also overtake leader group Mondelez. In this respect, Euromonitor welcomes the acquisition of Delacre by Ferrero. In 2014/15 business year, Ferrero International achieved a consolidated turnover of almost €9.5 billion (+13.4% on 2014), with a net profit of €514 million. This year’s revenues are expected to exceed €10 billion.
